Ford Motor Company (NYSE:F) is allowing Nissan to use part of its battery manufacturing facility in Kentucky amid a slowdown in electric vehicle demand, according to a Wall Street Journal (WSJ) report.
This Kentucky plant is one of two battery factories Ford launched in 2021 as part of a $7 billion investment in partnership with South Korea’s SK On. Currently, one of these plants is idle and the other is only partially operational.
According to the WSJ, Nissan will utilize part of the operational plant to produce batteries domestically, helping it avoid tariffs on imported EV components and reduce costs amid financial challenges, including a $4.5 billion loss in the first quarter and plans to lay off 20,000 workers.
Ford expects to report a $5 billion loss for its EV unit this year after posting a $5 billion loss in 2024.
Earlier this month, it suspended its full-year financial guidance due to uncertainty around the impact of tariffs on imported EV vehicle parts.
The Ford-SK On venture received a $9.63 billion loan from the US Department of Energy to support the construction of the Kentucky and Tennessee plants, which were expected to generate over 12,000 jobs. Ford said plans for the Tennessee site are unchanged.
Shares of Ford edged 0.6% lower to about $10.60 in the early afternoon on Wednesday, while Nissan shares added 1.8% at $5.